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CVS Health (CVS) Dips More Than Broader Markets: What You Should Know
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In the latest trading session, CVS Health (CVS - Free Report) closed at $68.14, marking a -0.79% move from the previous day. This move lagged the S&P 500's daily loss of 0.04%. Elsewhere, the Dow lost 0.22%, while the tech-heavy Nasdaq added 2.93%.
Prior to today's trading, shares of the drugstore chain and pharmacy benefits manager had gained 2.28% over the past month. This has lagged the Retail-Wholesale sector's gain of 5.35% and the S&P 500's gain of 4.22% in that time.
Investors will be hoping for strength from CVS Health as it approaches its next earnings release. The company is expected to report EPS of $2.12, down 11.67% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $86.47 billion, up 7.23% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.61 per share and revenue of $348.4 billion, which would represent changes of -0.92% and +8.04%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for CVS Health. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.12% lower. CVS Health is currently a Zacks Rank #3 (Hold).
Investors should also note CVS Health's current valuation metrics, including its Forward P/E ratio of 7.98. This valuation marks a premium compared to its industry's average Forward P/E of 6.52.
Investors should also note that CVS has a PEG ratio of 1.25 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CVS's industry had an average PEG ratio of 1.19 as of yesterday's close.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 225, which puts it in the bottom 11% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow CVS in the coming trading sessions, be sure to utilize Zacks.com.
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CVS Health (CVS) Dips More Than Broader Markets: What You Should Know
In the latest trading session, CVS Health (CVS - Free Report) closed at $68.14, marking a -0.79% move from the previous day. This move lagged the S&P 500's daily loss of 0.04%. Elsewhere, the Dow lost 0.22%, while the tech-heavy Nasdaq added 2.93%.
Prior to today's trading, shares of the drugstore chain and pharmacy benefits manager had gained 2.28% over the past month. This has lagged the Retail-Wholesale sector's gain of 5.35% and the S&P 500's gain of 4.22% in that time.
Investors will be hoping for strength from CVS Health as it approaches its next earnings release. The company is expected to report EPS of $2.12, down 11.67% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $86.47 billion, up 7.23% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.61 per share and revenue of $348.4 billion, which would represent changes of -0.92% and +8.04%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for CVS Health. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.12% lower. CVS Health is currently a Zacks Rank #3 (Hold).
Investors should also note CVS Health's current valuation metrics, including its Forward P/E ratio of 7.98. This valuation marks a premium compared to its industry's average Forward P/E of 6.52.
Investors should also note that CVS has a PEG ratio of 1.25 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CVS's industry had an average PEG ratio of 1.19 as of yesterday's close.
The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 225, which puts it in the bottom 11% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow CVS in the coming trading sessions, be sure to utilize Zacks.com.